Correlation Between Taseco Air and Tien Giang

Can any of the company-specific risk be diversified away by investing in both Taseco Air and Tien Giang at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Taseco Air and Tien Giang into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Taseco Air Services and Tien Giang Investment, you can compare the effects of market volatilities on Taseco Air and Tien Giang and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Taseco Air with a short position of Tien Giang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taseco Air and Tien Giang.

Diversification Opportunities for Taseco Air and Tien Giang

0.19

Correlation Coefficient

Taseco Air  Tien Giang

Average diversification

The 3 months correlation between Taseco and Tien is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Taseco Air Services and Tien Giang Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tien Giang Investment and Taseco Air is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Taseco Air Services are associated (or correlated) with Tien Giang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tien Giang Investment has no effect on the direction of Taseco Air i.e., Taseco Air and Tien Giang go up and down completely randomly.

Pair Corralation between Taseco Air and Tien Giang

Assuming the 90 days trading horizon Taseco Air is expected to generate 83.08 times less return on investment than Tien Giang. But when comparing it to its historical volatility, Taseco Air Services is 1.11 times less risky than Tien Giang. It trades about 0.0 of its potential returns per unit of risk. Tien Giang Investment is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  4,249,505  in Tien Giang Investment on October 6, 2024 and sell it today you would earn a total of  780,495  from holding Tien Giang Investment or generate 18.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Taseco Air Services  vs.  Tien Giang Investment

Taseco Air Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Taseco Air Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Taseco Air is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Tien Giang Investment

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tien Giang Investment are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Tien Giang displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Taseco Air and Tien Giang

The main advantage of trading using opposite Taseco Air and Tien Giang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taseco Air position performs unexpectedly, Tien Giang can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Tien Giang will offset losses from the drop in Tien Giang's long position.

The idea behind Taseco Air Services and Tien Giang Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.